The Monetary Policy Framework

The monetary policy framework strives to ensure the participation of a broad range of counterparties. Only institutions subject to minimum reserves may have access to the standing facilities and participate in open market operations based on standard tenders. For outright transactions, no restrictions are placed a priori on the range of counterparties.

In order to achieve its objectives, the Eurosystem has at its disposal a set of monetary policy instruments: it conducts open market operations, offers standing facilities and requires credit institutions to hold minimum reserves on accounts with the Eurosystem. These operations have to be conducted with eligible counterparties.

The tools used by the Eurosystem in the implementation of monetary policy shall consist of: